The biggest IPO of the year so far came to market today and started off with a bang. Raising more than $3.4 billion Snap, Inc. (NYSE: SNAP) successfully raised more than every other IPO this year combined. The company came to market with shares offered at $17 which was already above the $14- $16 range expected, but by the time shares opened investors pushed prices up to $24. All of this excitement and investors can not even vote with their new shares.
Analysts were all over the place today with their opinions and forecasts for the media company. Most agreed that Snap's timing was impeccable. Not only was this launch at the perfect time market wise, but also just the right timing that everyone had heard of the company and the story.
As for volatility investors can expect plenty of it. These high profile names always see rather violent price action in the first few days and then once again during the lock-up expiration. For Snap, Inc. there are millions of shares that must be held for six months. Expect that as that date looms investors will be questioning their positions once again.
The real question is will an investment in Snap at these levels be a profitable one. It is the hardest question to answer regarding IPO's of this high of a caliber. Remember that Facebook (NYSE: FB) had struggles early on and suffered a strong selloff in the days following its IPO. For those that are considering an investment in Snap, almost every analyst and media personality agreed today that patience will pay off.